Saturday, July 5, 2014

YOUR WALLET: Gas Prices Hit a Holiday High Not Seen in since 2008

As Americans drive to barbecues and the beach in coming days, they will be paying more for gas than on any Independence Day weekend since the record highs of 2008.
A gallon of unleaded gasoline cost an average of $3.67 Wednesday, almost 20 cents above last year's price, according to automobile club AAA. In California, drivers have been paying well over $4 a gallon for weeks.
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Prices at the pump are tracking a sharp rise in oil prices over the past month, after Islamist militants took control of several cities in Iraq. Investors and traders have worried that the spreading insurgency poses a threat to the country's oil production. Oil prices have given up some of their gains in recent days, but it will take some time for those declines to be reflected in the cost of gasoline.
The recent run-up in gasoline prices is a reminder that the U.S. still depends on imported oil, despite a rapid increase in domestic production. Global crude supplies are tight, and many analysts think drivers could be in for more pain in the coming months if violence worsens in Iraq or another major oil exporter. Higher fuel prices come at a delicate time for the U.S. economy, potentially stretching consumer budgets and weighing on growth as the Federal Reserve is rolling back stimulus.
Drivers "might cut back on other things, like shopping or dining or going out," said Michael Green, a AAA spokesman. The high cost of gas "really just affects their budget, and the amount they can spend on everything else when they're traveling."
Carla Coleman, an unemployed social worker from Los Angeles, said higher gasoline prices have cut sharply into her budget this summer as she drives to and from job interviews.
"Last night, I drove to Hollywood for a free jazz concert, and my mom told me not to go because I'm using her gas card. I'm more aware of where I'm going and how much I'm spending," said Ms. Coleman, 47, who had just filled her Toyota Camry at a 76 station in Sherman Oaks, Calif., where regular gasoline costs $4.17 a gallon. "I hope the prices go down."
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1 comment:

Anonymous said...

Obama has stated numerous times that he would like to see European style fuel prices here in the United States. i.e. $5.00+ dollars a gallon!!! He will stop at nothing to achieve this!!! Causing chaos in the Middle East and stopping the Keystone pipeline is only the beginning I fear!!!